Taxi fares in London look set to rise 8.92% following tariff review

Taxi fares in London look set to rise 8.92% following the latest tariff review.

In an upcoming meeting on 13 March, the Transport for London (TfL) Finance Committee will deliberate on proposed taxi tariff increases across the capital.

The suggestions come following the 2023/24 review of taxi (black cab) fares and tariffs, with the committee expected to approve a series of adjustments aimed at reflecting the rise in taxi drivers' operating costs and the average national earnings.

Key proposals include a uniform 8.92% hike across Tariffs 1, 2, and 3, aligning Tariff 4 rates with those of Tariff 2, slashing the Heathrow additional charge from £3.60 to £2.00, and elevating the fixed rates for shared taxis operating to and from Wimbledon Station and the All England Lawn Tennis Club (AELTC), as well as between Southfields Station and the AELTC during the Wimbledon Tennis Championships.

The Taxi Now Group (TNG), along with other major taxi booking platforms such as Addison Lee, FREENOW, and Gett, have expressed a preference for the 8.92% increase in Tariffs 1, 2, and 3, marking it as their top choice.

This sentiment was echoed by the Taxi Trade Tariff Group (TTTG), comprising representatives from the five principal taxi driver associations – the Licensed Taxi Drivers’ Association (LTDA), London Cab Drivers Club (LCDC), RMT, United Cabbies Group (UCG), and Unite the Union. The TTTG submitted a joint response advocating for the 8.92% increment as the sole fair and reasonable option, citing the rejection of alternative proposals that could lead to diminished drivers’ earnings amidst rising operating costs and national earnings.

The collective response from the TTTG highlights the inadequacy of last year's tariff increase, which did not account for a cost of living adjustment, only covering the surge in operating expenses. They argue that drivers' earnings should be integrally considered within the Cost Index, rather than separately. Furthermore, the group suggested that TfL's considerations of balancing drivers' earnings against customer affordability should extend to licensing requirements and road access reviews for taxis, including permissions for taxis to use all bus gates or low traffic neighbourhoods.